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Marketwired
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Select Sands Reports Second Quarter 2017 Results / Frac and Industrial Sand Sales Volumes Increased More Than 135% Over Q1 2017 Levels

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/15/17 -- Select Sands Corp. ("Select Sands" or the "Company") (TSX VENTURE: SNS)(OTCQX: SLSDF) today announced financial and operational results for the second quarter of 2017 and the filing of its 2017 second quarter financial statements and associated management's discussion and analysis on www.sedar.com. All results are stated in Canadian dollars (CAD) unless noted otherwise as US dollars (USD). The average currency conversion used for the second quarter was $1 USD = $1.3432 CAD.

Second Quarter 2017 Financial Highlights

--  Revenue more than doubled to $3.1 million from $1.5 million in the first
    quarter 2017. Second quarter revenue would have been greater, except for
    lost sales volumes of 8,000 to 12,000 tons due to a pause in shipping
    during the May flood in Arkansas, and the installation of a vertical
    shaft impact crusher at the Freeze Farm Wet Processing Facility.
--  Gross margin for the Company's Sand Operations was $0.8 million, a
    substantial improvement over the gross margin loss of $0.4 million
    during this year's first quarter.
--  Comprehensive loss decreased more than 75% to $0.8 million, or $0.01
    basic and diluted loss per common share, as compared to a first quarter
    2017 comprehensive loss of $3.4 million, or $0.04 basic and diluted loss
    per common share. These results included non-cash share-based
    compensation of $0.6 million and $2.2 million for the second and first
    quarters, respectively.
--  Adjusted EBITDA(1) loss totaled $254,000 compared to a $771,000 loss for
    first quarter 2017 - a 67% improvement quarter-over-quarter.
--  Capital expenditures were approximately $0.8 million as compared to $3.2
    million for the first quarter 2017. Included in first quarter capital
    spending was $1.3 million for the purchase of the Bell Farm Property.
--  As of June 30, 2017, cash and cash equivalents were $3.4 million,
    inventory on hand was $2.3 million, and accounts receivable was $3.1
    million. The primary driver of the $1.7 million increase in accounts
    receivable from the $1.4 million balance as of March 31, 2017 was the
    rapid growth in sales in the latter part of the second quarter.

(1)  Adjusted EBITDA is a non-IFRS financial measure and is described and
     reconciled to net loss in the table under "Non-IFRS Financial
     Measures".

Zig Vitols, President and Chief Executive Officer, commented, "Considering that we only began commercial production at the beginning of this year and the impact of flooding during May, I am extremely pleased with our results for the second quarter. Driving our results was the hard work of our employees and I want to personally thank all of them for their continued dedication and efforts."

Second Quarter 2017 Operational Highlights

--  Select Sands continues to see strong demand for its Northern White frac
    sand product due to its premium quality and the strategic location of
    the Company's operations relatively close to the oil and gas basins in
    Texas, Oklahoma, Colorado, and Louisiana (SCOOP/STACK/Woodford,
    Haynesville, Fayetteville, Permian, DJ Basin and Eagle Ford). The
    enhanced economics provided by improving technologies for drilling and
    completing horizontal wells (more wells drilled per rig, longer lateral
    lengths, more frac stages per foot, and more sand per frac stage) is
    driving increased use of frac sand and the Company anticipates frac sand
    intensity and demand will continue to grow.
--  Second quarter 2017 sales volumes for total frac and industrial sand
    increased 136% from the first quarter:


                                                                    Percent
                                                Q2 2017   Q1 2017    Change
                                             -------------------------------
                                             -------------------------------
Frac sand                                        52,480    19,968       163%
Industrial sand                                     466     2,459       -81%
                                             -------------------------------
Frac and Industrial sand                         52,946    22,427       136%
Other sand and gravel                             4,146     6,801       -39%
                                             -------------------------------
                                                 57,092    29,228        95%


--  Reconfiguration of operations processes were completed during the second
    quarter and the processing facility now has the capability to produce at
    a rate of 600,000 tons per year. To ensure optimal inventory management,
    Select Sands is producing at levels consistent with its ability to
    deliver product, which is primarily by rail.
--  Efforts continue to assemble rail car sets to meet the strong demand for
    product. The Company is also pursuing opportunities for securing
    additional rail cars for product shipments through new and broadened
    customer relationships.
--  At the end of the second quarter, more than 300 rail cars were in-
    service. Select Sands is working closely with interstate and short-line
    railroads to enhance service through efficiencies and increased loading
    capabilities. Complementing these efforts, the Company has secured
    additional rail car storage to improve sequencing of trains servicing
    its facility.
--  To support Select Sand's plans for further capacity expansion of its
    processing facility, certain long lead time equipment has been purchased
    and is anticipated to be installed along with other components later
    this year once enhanced logistics capabilities are in place.

Financial Summary

The following table includes summarized financial results for the three months ended June 30, 2017 and March 31, 2017:

----------------------------------------------------------------------------
Select Sands Corp.
Summarized Consolidated Interim Statements of Operations and Comprehensive
Loss
(Expressed in Canadian Dollars) (Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Three Months     Three Months
                                                     Ended            Ended
                                             June 30, 2017   March 31, 2017
                                             -------------------------------
Revenue                                       $  3,083,192    $   1,458,553
Cost of Goods Sold                               2,116,518        1,766,126
Depreciation and Depletion                         189,126          121,289
----------------------------------------------------------------------------
Income from Sand Operations                   $    777,548    $    (428,862)
----------------------------------------------------------------------------
General and Administrative ("G&A") Expenses
 (1)                                             1,173,682        2,684,280
Depreciation in G&A Expenses                           320               --
----------------------------------------------------------------------------
Operating Loss                                $   (396,454)   $  (3,113,142)
----------------------------------------------------------------------------
Interest income                                      8,045           10,424
Foreign exchange (loss) gain                      (631,708)         170,999
Gain on sale of equipment                            1,596               --
Loss from flooding at plant                        (76,737)              --
Share of loss in equity investee                   (57,554)        (157,059)
----------------------------------------------------------------------------
Net Loss                                      $ (1,152,812)   $  (3,088,778)
----------------------------------------------------------------------------
Foreign currency translation adjustment            356,876         (308,736)
----------------------------------------------------------------------------
Comprehensive Loss                            $   (795,936)   $  (3,397,514)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic and Diluted Loss Per Common Share       $      (0.01)   $       (0.04)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted Average Number of Shares Outstanding   86,959,360       85,484,729
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Adjusted EBITDA (2)                           $   (254,316)   $    (771,071)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1)  Excludes depreciation. Includes non-cash share-based compensation of
     $633,910 and $2,196,418 for the second and first quarters,
     respectively.
(2)  Excludes depreciation, depletion and amortization; non-cash share-based
     compensation; gain on sale of fixed assets; and, loss from flooding at
     plant. See table under "Non-IFRS Financial Measures" for reconciliation
     to net loss.

Outlook

"In preparation for improved rail movements, we increased our inventory levels during the second quarter," concluded Mr. Vitols. "This benefitted us significantly in July, as we sold our highest monthly level of product tons to date. We believe this bodes well for another quarter of solid growth in deliveries to our customers and increased revenue for Select Sands. We continue to make substantial progress on multiple fronts, with our primary focus remaining on further enhancing our logistics capabilities so as to reach our maximum production rate in the second half of the year. This will allow us to further capitalize on the strong demand for our frac sand products, including increased deliveries under our long-term one million-ton per year supply agreement for 2018 and 2019."

Elliott A. Mallard, PG of Kleinfelder is the qualified person as per the NI-43-101 and has reviewed and approved the technical contents of this news release.

Conference Call Information

The Company will host a conference call on Wednesday, August 16, 2017, at 11:00 a.m. Eastern to discuss its second quarter 2017 results. To access the conference call, U.S. callers may dial toll free 1-844-419-5430 and international callers may dial 1-216-562-0476. The conference call access code is 70093150. Please call ten minutes ahead of the scheduled start time to ensure a proper connection. The conference call will also be available for playback by telephone for one week beginning shortly after the call. To access the telephone playback, dial 1-855-859-2056 or 1-404-537-3406 for international calls. The replay conference call access code is 70093150.

About Select Sands Corp.

Select Sands Corp. is an industrial Silica Product company developing its 100% owned, 520-acre Northern White, Tier-1, silica sands project located in Arkansas, U.S.A. Select Sands' Arkansas property has a logistical advantage of being significantly closer to oil and gas markets located in Oklahoma, Texas, New Mexico, Colorado and Louisiana than Wisconsin sources. The Tier-1 reference above is a classification of frac sand developed by PropTester, Inc., an independent laboratory specializing in the research and testing of products utilized in hydraulic fracturing & cement operations, following ISO 13503-2:2006/API RP19C:2008 standards.

Select Sands' Sandtown project has NI 43-101 compliant Indicated Mineral Resources of 42.0MM tons (TetraTech Report; February, 2016) and Bell Farm has Inferred Mineral Resources of 49.6MM tons (Kleinfelder Report; April, 2017). Both deposits are considered Northern White finer-grade sand deposits of 40-70 Mesh and 100 Mesh.

Forward-Looking Statements

This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. The forward-looking statements in this press release relate to the continued escalation of rail car count, third quarter 2017 frac and industrial sand sales volumes, and further capacity expansion. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

----------------------------------------------------------------------------
Select Sands Corp.
Consolidated Interim Statements of Financial Position
(Expressed in Canadian Dollars)
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                          As at
                                                    June 30,   December 31,
                                                        2017           2016
----------------------------------------------------------------------------
ASSETS
Current
  Cash and cash equivalents                    $   3,397,380  $  11,776,321
  Amounts receivable                               3,143,933        133,688
  Inventory                                        2,336,696              -
  Prepaid expenses                                    55,034         47,779
                                              ------------------------------
Total Current Assets                               8,933,043     11,957,788

Deposits                                             431,460        153,021
Investment in Affiliate                            2,785,387      3,000,000
Property, Plant and Equipment                     14,640,813      6,763,193
Exploration and Evaluation Assets                          -      2,142,986
                                              ------------------------------

Total Assets                                   $  26,790,703  $  24,016,988
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES
Current
  Accounts payable and accrued liabilities     $   1,111,557  $     417,210
  Current portion of long-term debt                  502,859              -
                                              ------------------------------
Total Current Liabilities                          1,614,416        417,210
                                              ------------------------------

Long-term Debt                                     1,508,576              -
                                              ------------------------------
Total Liabilities                                  3,122,992        417,210
                                              ------------------------------

EQUITY
Share Capital                                     40,985,314     39,388,462
Share-based Payment Reserve                        6,014,048      3,349,517
Accumulated Other Comprehensive Income (Loss)         39,661         (8,479)
Deficit                                          (23,371,312)   (19,129,722)
                                              ------------------------------
Total Equity                                      23,667,711     23,599,778
                                              ------------------------------

Total Liabilities and Equity                   $  26,790,703  $  24,016,988
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Select Sands Corp.
Consolidated Interim Statements of Cash Flows
(Expressed in Canadian Dollars)
(Unaudited)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                  Six Months     Six Months
                                                       Ended          Ended
                                               June 30, 2017  June 30, 2016
----------------------------------------------------------------------------

Operating Activities
  Net loss for the period                      $  (4,241,590) $    (749,611)
  Adjustments for non-cash items:
    Depreciation and depletion in cost of
     goods sold                                      310,415              -
    Depreciation                                         320              -
    Share-based compensation                       2,830,328        238,847
    Foreign exchange                                  48,140          6,490
    Gain on sale of equipment                         (1,596)             -
    Share of loss in equity investee                 214,613              -
  Changes in non-cash operating assets and
   liabilities:
    Amounts receivable                            (3,010,245)       (22,472)
    Inventory                                     (2,336,696)             -
    Prepaid expenses                                  (7,255)        22,171
    Accounts payable and accrued liabilities         694,347        (23,604)
                                              ------------------------------
Total Cash Used in Operating Activities           (5,499,219)      (528,179)
                                              ------------------------------

Investing Activities
  Property, plant and equipment                   (4,040,124)             -
  Proceeds from disposal of equipment                  7,786              -
  Exploration and evaluation assets                        -       (314,741)
  Deposits                                          (278,439)             -
                                              ------------------------------
Total Cash Used in Investing Activities           (4,310,777)      (314,741)
                                              ------------------------------

Financing Activities
  Warrants exercised                               1,041,705         43,555
  Options exercised                                  389,350              -
  Share issue costs                                        -         (5,000)
                                              ------------------------------
Total Cash Provided by Financing Activities        1,431,055         38,555
                                              ------------------------------

Decrease in Cash and Cash Equivalents             (8,378,941)      (804,365)

Cash and Cash Equivalents, Beginning of Period    11,776,321      3,172,051
                                              ------------------------------

Cash and Cash Equivalents, End of Period       $   3,397,380  $   2,367,686
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Supplementary Cash Flow Information and Non-
 Cash Investing and Financing Transactions:
  Cash received for interest                   $      18,469  $       7,186
----------------------------------------------------------------------------
  Cash paid for interest                       $           -  $           -
----------------------------------------------------------------------------
  Cash paid for taxes                          $           -  $           -
----------------------------------------------------------------------------
  Issue of vendor debt for assets acquired     $   2,011,435  $           -
----------------------------------------------------------------------------
  Issue of shares on exercise of warrants and
   options                                     $     165,797  $      19,034
----------------------------------------------------------------------------
  Issuance of shares for convertible debenture $           -  $     218,000
----------------------------------------------------------------------------
  Issuance of shares for interest on
   convertible debenture                       $           -  $      53,885
----------------------------------------------------------------------------
  Debenture interest accrued                   $           -  $       9,589
----------------------------------------------------------------------------

Non-IFRS Financial Measures

The following information is included for convenience only. Generally, a non-IFRS financial measure is a numerical measure of a company's performance, cash flows or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. Adjusted EBITDA is not a measure of financial performance (nor does it have a standardized meanings) under IFRS. In evaluating non-IFRS financial measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts.

The Company uses both IFRS and certain non-IFRS measures to assess operational performance and as a component of employee remuneration. Management believes certain non-IFRS measures provide useful supplemental information to investors in order that they may evaluate Select Sand's financial performance using the same measures as management. Management believes that, as a result, the investor is afforded greater transparency in assessing the financial performance of the Company. These non-IFRS financial measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with IFRS.

Reconciliation of Net Loss to EBITDA to Adjusted EBITDA:

Three Months      Three Months
                                                    Ended             Ended
                                            June 30, 2017    March 31, 2017
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Loss                                 $     (1,512,812) $     (3,088,778)

Add Back
  Depreciation and depletion                      189,446           121,289
  Share-based compensation                        633,910         2,196,418
                                        ------------------------------------

EBITDA                                   $       (329,456) $       (771,071)

Add Back
  Loss from flooding at plant                      76,737                 -
Deduct For
  Gain on sale of equipment                        (1,596)                -
                                        ------------------------------------

Adjusted EBITDA                          $       (254,315) $       (771,071)

The Company defines Adjusted EBITDA as net income (loss) before finance costs, income taxes, depreciation and amortization, non-cash share-based compensation, loss from flooding at its plant, and gain on sale of fixed assets. Select Sands uses Adjusted EBITDA as a supplemental financial measure of its operational performance. Management believes Adjusted EBITDA to be an important measure as they exclude the effects of items that primarily reflect the impact of long-term investment and financing decisions, rather than the performance of the Company's day-to-day operations. As compared to net income according to IFRS, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's business, the charges associated with impairments, termination costs or Proposed Transaction costs. Management evaluates such items through other financial measures such as capital expenditures and cash flow provided by operating activities. The Company believes that these measurements are useful to measure a company's ability to service debt and to meet other payment obligations or as a valuation measurement.

Indicated Resources Disclosure

The Company advises that the production decision on the Sandtown deposit (the Company's current "Sand Operations") was not based on a Feasibility Study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will occur as anticipated or that anticipated production costs will be achieved.

Contacts:
Select Sands Corp.
Zigurds Vitols
President & CEO
(604) 639-4533
www.selectsandscorp.com

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